SUSTAINABLE MARKETING REPORT

By Andrea Busiko (13011104), Taylor Marsh (12468818), Patrizia Coric (12862457),

Paige Morris (12823810), & Tamarah Benson (12681976)

BX2184-TSV-INT Sustainable Marketing Management

Lecturer - Dr Breda McCarthy

James Cook University - School of Business

Due - 16/10/2015

ContentsExecutive Summary............................................................................................................................3

1. Introduction......................................................................................................................................3

2. Marketing Mix..................................................................................................................................4

2.1 Product...........................................................................................................................4

2.2 Price...............................................................................................................................5

2.3 Place/Distribution............................................................................................................5

2.4 Promotion/Marketing Communications:..........................................................................6

3. PESTLE Analysis............................................................................................................................6

3.1 Political-legal..................................................................................................................7

3.2 Economic........................................................................................................................7

3.3 Socio-cultural..................................................................................................................8

3.4 Technological.................................................................................................................8

3.5 Ecological.......................................................................................................................9

4. Market Audit..................................................................................................................................10

5. Competition and SWOT Analysis...............................................................................................10

5.1 Competitor Analysis......................................................................................................10

6. Market Segmentation and Description of the Target Market..................................................14

6.1 Demographic................................................................................................................14

6.2 Geographic...................................................................................................................14

6.3 Psychographic..............................................................................................................14

6.4 Behavioural...................................................................................................................15

7. Customer Audit.............................................................................................................................16

8. Objectives......................................................................................................................................16

9. Financials......................................................................................................................................17

10. Implementation, metrics and control........................................................................................18

10.1 Implementation...........................................................................................................18

10.2 Metrics........................................................................................................................18

10.3 Control........................................................................................................................19

11. Conclusion...................................................................................................................................20

References........................................................................................................................................21

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Executive Summary

The purpose of this report was to conduct a sustainability analysis on the Australian

natural cosmetics brand Sukin. Through the use of a marketing mix analysis, utilising

three sustainability frameworks (Triple Bottom Line, Natural Capitalism and The

Natural Step Framework) Sukin was found to be fairly sustainable with major efforts

in negating its carbon emissions through its carbon neutral certification, online based

promotional activities, low economically friendly pricing, environmentally friendly and

socially responsible products. Sukin distribution and choice of suppliers/retailers

were not as highly sustainable with possibly excessive fossil fuel use through

transportation and retailers. A PESTLE analysis found that Sukin complied with legal

and moral requirements with good Corporate Social Responsibility. An increase in

sustainable awareness highlighted an opportunity for the brand and recognition of

good understanding within the ecological and technological environments has helped

Sukin further their brand successfully and sustainably.

The brand and products were found to appeal predominantly to female

consumers within the green market, and represented a strong target market as they

are considered to have greater influence over regular low involvement purchase

decisions for their household. The target market was found to be split into three

segments: young, typically single females aged 15-24; mothers aged 24-44; and

women 45 and over. A market audit found increased media attention and awareness

of environmental issues has led to a preference for green, eco-friendly products

among these consumers.

With this information, objectives were set for the company. Marketing objectives

included to increase brand awareness through a 12 month media campaign, utilise

social media channels, and successfully maintain a strategic alliance with Bianca

Cheah as brand ambassador. The main financial objective was set to increase

market share over the next five years by 11% by following through with marketing

objectives. Finally the societal objective was set to improve efforts to educate

consumers by reinforcing Sukin’s company culture and deeply-held values of

sustainability, with a media campaign recommended to be implemented whereby

consumers will be educated on sustainable practices they can adopt.

These are to be implemented over the 13 months, with a breakdown of

estimated finances and a timeframe contained within the report. A variety of metrics

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for each objective will be used to measure and evaluate the program, such as social

media followers, sales and profits and new and existing membership numbers.

Control measures have been put in place to ensure success, through the use of

contingency plans regarding natural disasters, shifts in external environments, PR

disasters and poor implementation.

Limitations for this report were found when analysising Sukin’s sustainability

with limited access to internal information on Sukin and its suppliers.

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1. Introduction The following report aims to outline a marketing plan for Sukin to improve its

business sustainability, in the form of a social media marketing campaign to educate

consumers and change their behaviour in terms of product consumption. As an

Australian natural skincare range, Sukin strives to deliver high quality, affordable,

and effective natural skin and hair care that consumers trust to meet their needs

while remaining environmentally, economically and socially sustainable (Sukin,

2015). Using data sourced from a variety of textbooks, websites, articles and statistic

reports, internal and external situation analysis, market segmentation and

promotional evaluation have been undertaken to provide an insight into the business

and its current environment to remain proactive and adaptive to change within the

market. Given rising concerns regarding consequences of unsustainable business

and consumption practices have on the environment and our society, demand has

increased for accountability and therefore environmental education and awareness

has produced a growth in supply of organic and natural brands (Carey, 2004; Korink,

2013). Furthermore, objectives were developed surrounding projected increase in

awareness, engagement and revenue, while implementation and control measures

for the recommended campaign are provided to ensure organisational strategy

aligns with Sukin’s mission, values and culture.

2. Marketing MixTo analyse, evaluate and make recommendations for a business in terms of

sustainable improvement, the concept of sustainability must be fully understood. The

World Commission on Environment and Development’s Brundtland Report defines

sustainable development as “development that meets the needs of the present

without compromising the ability of future generations to meet their own needs”

(Martin & Schouten, 2012, p. 28). The report is widely regarded to be the first

definition, philosophy and vision of sustainability with The World Commission calling

for governments and industries to show more environmental and social responsibility

(Martin & Schouten, 2012). In terms of incentives, sustainable marketing can

differentiate a business, give them a competitive advantage in the market,

encourage innovation and development and lower operating costs. While there are a

number of frameworks available, all theories present important information and

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considerations which businesses should use to develop sustainable and responsible

practices in everyday production.

This section of the report will analyse Sukin’s current sustainability efforts

through the application of the marketing mix. The marketing mix consists of four

controllable elements used to market a product fitted to the needs of the consumer

(Quester, Pettigrew, Kopanidis, Rao Hill & Hawkins, 2014). These four elements are:

product, price, place and promotion. To analyse the level of sustainability and

determine the successfulness of Sukin’s current sustainability efforts the marketing

mix will be looked at through a number of sustainability frameworks.

Triple Bottom Line:Martin and Schouten (2012) discuss sustainability within the three dimensions of

environmental, social and economic, known as the Triple Bottom Line, coined by

entrepreneur John Elkington. This framework encourages businesses to maintain

competitive advantages in each of the three pillars by looking at specific measurable

points of references. For example: sales and profits can be used to indicate

economic activity; energy usage and waste production for environmental impacts;

and labour practices and product safety for social performance.

Natural Capitalism:Martin and Schouten (2012) recognise Natural Capitalism as the act of a business

recognising and valuing four sources of capital; financial (cash and investment),

manufactured (infrastructure and technology), natural (natural resources and

ecosystems services) and human (labour, talent, intelligence and creativity), with

“particular emphasis on building natural and human capital” (pp 300). To adapt and

maintain the focus on these four capitals, four interlinking principles are emphasised:

1. Radical resource productivity: using limited or irreplaceable resources

effectively and wisely (resulting in slower depletion of natural resources, less

pollution and greater employment)

2. Biomimicry: Industrial processes mimicking biological models where nothing is

wasted, and all waste products have a new use (i.e. food waste being turned

into fuel).

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3. Service economies: Reducing waste by meeting consumers’ needs with a

multi-use service (i.e. a video store loaning one movie to multiple consumers

creates less need for production and, therefore less waste).

4. Reinvestment: using dividends and profits to buy additional productive capital

(i.e. using profits to invest in local education programs, which in turn offer the

business more local potential staff) (Martin and Schouten, 2012)

The Natural Step Framework:Alternatively, The Natural Step Framework (TNSF) provides a set of four principles to

guide businesses towards implementing sustainable measures in everyday

operations. A sustainable society, organisation, or business is one that satisfies each

of these system conditions:

1. Causes no systematic increases in environmental concentrations of

substances from the Earth’s crust

2. Causes no systematic increases in environmental concentration of synthetic

substances

3. Causes no systematic increases in ecosystem degradation, and

4. Causes no systematic barriers to people meeting their own needs (The

Natural Step, 2015).

2.1 ProductSukin’s focus is on face and body cleansers, moisturisers, masks, and scrubs,

as well as hair shampoos and conditioners. The products fall within the Australian

organic cosmetics industry and of the nine human well-being fundamental conditions

identified by Max-Neef (Martin and Schouten, 2012), Sukin’s products were identified

as meeting three; creation (self-expression), identity (sense of self), and freedom

(access to choice). These products serve the consumers core level need for

maintaining hygiene.

The products are created with “active botanicals and natural oils” (Sukin,

2009) free from harsh chemicals, detergents, synthetic fragrances or animal derived

products. The products have in-depth ingredient listing on the Sukin website and

there is a section of the website dedicated to explaining every ingredient. This helps

Sukin with transparency and can help to increase consumer trust, however, there is

no information available on where these ingredients are sourced. This makes it hard

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to evaluate the products and their formulations through a sustainability perspective

as it is not known where the ingredients are grown, or how sustainably focused the

suppliers are. Without this information it must be highlighted that some ingredients

may not be sourced locally from Australia and therefore must be shipped from

greater distances to be delivered to Sukin’s manufacturing plants. Consequently, this

may not align with the Natural Capitalism principal of radical resource productivity,

due to possible unnecessary fossil fuel consumption used during transportation.

Many of the ingredients are certified organic, biodegradable and grey water

safe which is environmentally beneficial with the elimination of synthetic substances

which natural systems struggle to adequately break down (Martin and Schouten,

2012) and satisfies system conditions 2 and 3 of TNSF. Additionally, the products

are vegan friendly with no animal by-products or animal testing, which is not only

environmentally beneficial, but also socially praised by the ‘green activists’ consumer

market (Finisterra do Paço, Barata Raposo & Filho, 2009). The products are

packaged in almost 100% recyclable PET plastic bottles, LDPE tubes (a recyclable

product that can be re-processed many times), glass containers, and recyclable

metal springs within the pump lids (Sukin, 2015). Only the sticker labelling and

polypropylene pump lids are un-recyclable. While Sukin utilises a more sustainable

choice to use recyclable packaging, there is a heavy reliance on consumers to act

sustainably and take part in recycling behaviours. Also, while the materials used in

the packaging are recyclable, the raw materials (such as crude oils and natural

gasses) required to create the finished materials are not highly sustainable. This

directly contradicts the first three conditions of the TNSF.

However, to combat the negative environmental impacts, Sukin is a certified

carbon neutral business, through collaboration and certification from The Carbon

Reduction Institute (CRI) (Sukin, 2015). The certification represents that Sukin has

committed to annually calculating their carbon footprint through the use of a carbon

audit, following CRI’s online reporting, reducing emissions where possible, and

purchasing high-quality carbon credits through CRI to offset unavoidable emissions.

The carbon neutral certification means that Sukin strives to avoid emissions and

purchases enough carbon credits to negate unavoidable emissions. This helps Sukin

to combat negative environmental impacts in an economical way.

While the product is strives towards sustainability Sukin has opportunities to

further its sustainability commitments through packaging, and ingredient sourcing.

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2.2 PriceSukin’s product costs are low, aiming to be affordable for their target market

(outlined in the Market Audit). Competitively, their pricing for all products is

noticeably lower or directly similar than that of their main competitors products

(outlined in the Competitor Analysis) and comparable, competitive pricing to “non-

green” competitor’s products. Sukin employs a mix of cost-based pricing for its

products. Cost based pricing refers to marketers setting a fixed amount or

percentage to the products cost in an effort to keep consumer prices minimal while

generating high volumes of sales (Martin & Schouten, 2012). This is sustainable

economically for Sukin as long as it maintains a profit margin adequate enough to

continue business practices, and socially sustainable as long as production costs are

payed fairly and the target market can continue to afford the products. A value based

pricing strategy is difficult to use due to consumers questioning “green” products

personal worth and quality (Martin & Schouten, 2012). While, Sukin has not used

pricing to position itself as a luxury product, its brand image and labelling is used to

present itself as trustworthy and transparent, which helps to alleviate consumer

concern for quality (Martin & Schouten, 2012).

2.3 Place/DistributionSukin offers its products across many different countries in-store and online

but its main geographic targets remain Australia, New Zealand and multiple

countries across Asia. To have a presence in-store across the world requires Sukin

to ship physically ship products around the world and enter in to partnerships with

retail outlets. Here in Australia their main retailers are Chemist Warehouse and

Priceline Pharmacy. Aligning with specific brands means that Sukin’s sustainability

efforts are impacted by the chosen retail company’s sustainability stances and

efforts. Retailers are not often highly sustainable as they generally require excessive

energy consumption (through lighting, store fronts, transportation of stock, etc.) and

produce excessive waste (delivery packaging and advertising such as catalogues

and poster, etc.). Through the use of these retailers, Sukin does not meet TNSF

conditions. A positive benefit to choosing Priceline pharmacy lies in societal

sustainability, as Priceline (through recognition of corporate social responsibility)

often supports social causes that benefit the population (such as anti-bullying

campaigns and fund-raisers to aid in health issues). This is a good example of the

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reinvestment condition of Natural Capitalism. Alternatively Sukin also offers its

products through their own website online with delivery postal options. While it would

initially seem more eco-friendly to be based online and offer products direct to

consumers, there are both positives and negatives. The costs of running a

warehouse that product is sent direct to consumers from can be more economical

than distribution to, and selling through a retailer. However sending product direct to

consumers relies on transport services which consume more fossil fuels and result in

more emissions than bulk distribution. Sukin does combat this with their offset

purchases through the CRI, however, does not have any innovative steps in place to

avoid the actual emissions. Online retailing would be more economical as Sukin

receives 100% of the profits, although cost of each individual purchase being sent

out would inevitably cost more than bulk shipping. It also allows consumers to easily

access their product no matter their location, which satisfies step 4 of TNSF. Overall

the use of physical retailers and online retailing pose both negative and positive

environmental sustainability issues, but Sukin’s use of their own personal online

retail website can be considered more sustainable than the use of suppliers and

distributors.

2.4 Promotion/Marketing Communications:Martin and Schouster (2012) recognise five tools within sustainable marketing

communication; advertising, public relations (PR), sales promotion, personal selling

and direct marketing. Sukin avoids producing traditional adverting material in favour

of more sustainable promotional activities. Sukin does not produce any print media

of their own, although, they do benefit from featuring in retail supplier’s print and

television media. Often their promotional sales are ‘percentage off’ sales or ‘buy two

get one free’ delivered through the retailer. Both of these kinds of promotional sales

need to be monitored to make sure that the profits are still sustainable and that they

do not increase excess consumption by consumers too much. An offer like ‘buy two

get one free’ can generate excess consumption as consumers will purchase more

than what is necessary. Sukin’s products do not pose a major waste threat as they

have a very long shelf life (less risk of spoiling before the consumer can use it all)

and come in small manageable sized packaging. Public relations and direct

marketing are utilised through the use of the ‘Sukin Club’ online, where consumers

can sign up and elect to receive targeted promotions and brand information. Email is

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a good tool to utilise from a sustainable stand point as most consumers already have

an electronic devices through which they will access the information, and has low

costs involved (therefore, economically effective in comparison to traditional print

media). Although devices require electricity to power and aren’t often sustainable to

produce, few consumer will purchase electronic devices for the intent purpose of

view Sukin related information, but will instead be a by-product of the initial

consumption.

To further communicate its sustainable practices to consumers, Sukin also

uses a consumer friendly website, and use of social media. The brand has been

awarded with many reputable sustainability certifications such as the Carbon Neutral

stamp (positioned next to their logo) from the Carbon Reduction Institute of Australia

which Sukin provides information on through their website. Sukin’s website, while

also serving as an online store, is used as an educational tool, dedicated to providing

information to their consumers about their sustainability efforts, natural ingredients

and personal benefits for consumers. In addition, to keep fresh on social media,

Sukin has recently appointed their first brand ambassador, Bianca Cheah (Proietto,

2015). Cheah is the founder of the online boutique Sports Luxe and operates a

successful blog dealing with topics of health, travel, style and fitness. The use of

Cheah as a brand ambassador helps consumers to trust and connect with Sukin

while further emphasising their sustainable image. Overall their promotional

marketing is deemed fairly sustainable societally with no misleading information,

environmentally with little to no unnecessary waste and consumption and

economically affordable.

3. PESTLE AnalysisA PESTLE analysis can be used to examine a business’ external environment

by researching and identifying key issues in the political / legal, economic, socio-

cultural, technological, and ecological components of the industry, and can provide

an insight into where a business need improvements.

3.1 Political-legal

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Having a strong understanding of the political and legal influences of an

industry is of vital importance for any business. Specifically, the cosmetics and

personal care industry has various regulatory bodies who monitor the market to

ensure safe practice. Firstly, Product Safety Australia, an organisation within the

Australian Competition and Consumer Commission (ACCC), provides strict

regulations for the cosmetics industry, including mandatory standards of ingredients

labelling (Australian Competition and Consumer Commission, 2015). Product Safety

Australia also works with the Australian Government’s Department of Health and

their National Industrial Chemicals Notification and Assessment Scheme (NICNAS),

which regulates cosmetic ingredients. Specifically, chemicals are monitored and

regulated under the Industrial Chemicals (Notification and Assessment) Act 1989

(Department of Health, 2015).

The Australian Government’s Department of Communications and the Arts

also includes various regulations for online businesses and provides information on

e-Commerce, marketing campaigns and spam and the use of social media

platforms. Any business marketing programs must abide by a variety of laws;

particularly, the Spam Act (2003) outlines how businesses can target consumers

online with regards to commercial electronic messages like emails (Department of

Communication and the Arts, 2015). A variety of other laws regarding consumer

privacy and security also apply to all Australian businesses under the ACCC.

Greenwashing is another major issue within any organic industry, with the

Australian Consumer Law (effective from 1 January 2011) containing simple rules to

ensure that businesses trade fairly with consumers. Specifically, the law states “that

businesses must not mislead or deceive consumers in any way”, with penalties

applying to business who do (Australian Competition and Consumer Commission,

2011, p. 1). It is important for Sukin to ensure that all of these laws and standards,

including those set by the Carbon Reduction Institute regarding carbon neutral

status, are abided by both now and in the future if regulation requirements change.

Additionally, the Australian Government’s Department of the Environment

offers a variety of grants and funding. For example, the Emission Reduction Fund

provides incentives for projects to reduce their emissions, while the Department

awards a variety of other grants multiple times per year to organisations improving

sustainability (Department of the Environment, 2015). Businesses should take

advantage of these grants which could not only boost brand awareness and bottom-

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line sales but encourage other businesses to also set sustainable practices in their

everyday operations. Therefore, key findings from the political-legal analysis

conclude that Sukin must be aware of and adhere to various regulatory requirements

from different organisations, and that grants and funding from the Australian

Government are advantageous to pursue to increase publicity of the brand and its

sustainable achievements.

3.2 EconomicUnderstanding the economic climate of the industry, country and the general

international market is also important for a business. Specifically, there are trade

agreements and various regulations businesses must follow to export to specific

countries. For example, Australia and Sukin’s major international market, the UK,

have extensive economic and trade agreements, with the UK being Australia’s

seventh largest two-way trading partner (Department of Foreign Affairs and Trade,

2015). However, if Sukin wishes to expand their international market and export to

other countries, specific rules and regulations must be followed to ensure correct

exporting procedures are put in place.

In terms of economic trends, discretionary income, which is the income

consumers have available to spend on nonessential items, has been shown to be a

key external driver in the organic cosmetic industry (IBIS World, 2015). With a

predicted increase of household discretionary income over 2014-15, the sustainable

personal care and cosmetics industry should be experiencing growth as consumers

have more income available to spend on nonessential organic and natural products

(IBIS World, 2015). While Sukin’s low pricing strategy suggests that higher income

would have little effect on the business because the product is already affordable,

the rise in disposable income would make consumers more open to purchasing

organic products in general. In turn, this would increase consumer’s likelihood to

consider Sukin and other green products in their decision-making process, boosting

brand awareness and creating an opportunity to acquire habitual consumers once

customers realise how affordable the product is. Thus, key economic impacts include

trade requirements, including tariffs and regulations, which must be followed by

businesses wishing to expand into the international market, and a favourable

increase in disposable household income.

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3.3 Socio-culturalHaving a strong understanding of the socio-cultural climate of a business is

vitally important, especially for the growing organic industry. Understanding

consumer behaviour is key to effectively positioning and targeting the potential

market. There is an evident increase in the number of environmentally-conscious

consumers, whose awareness of ecological issues has led to a preference for green

products in a variety of industries (Greendex, 2010). Consumers are becoming

increasingly aware of the consequences of their daily purchases on the environment,

with the sale of natural products, especially natural cosmetics, increasing steadily

(Korink, 2013).

Along with this increase of environmentally-concerned consumers, health

consciousness has also increased amongst many customers, and has been

identified as "one of the most important drivers of the organic movement” (IBIS

World, 2015). This trend indicates that consumers will demand healthier product

alternatives, such as those with natural ingredients which are beneficial for the skin

(Korink, 2013). Both of these key socio-cultural shifts of increased environmental

awareness and health-consciousness create an opportunity for Sukin and similar

businesses to capitalize on consumer values, which are further discussed in the

Customer Audit.

3.4 TechnologicalIn the current technologically-driven world, businesses must ensure they

remain innovative and up-to-date with technological advances in their industry and

the sustainable landscape as a whole. For the cosmetics and personal care industry,

technology plays a major role in sourcing natural ingredients, packaging and general

sustainable programs during business operations. For example, recycling

innovations has provided Sukin the opportunity to use PET plastic, metal springs,

LDPE tubes, and amber glass in its packaging and labelling, all being recyclable and

reusable (Sukin, 2015). Furthermore, Sukin’s ‘Grey Water Safe’ scheme ensures

that their product range has been formulated to be biodegradable and grey water

safe. Other businesses should adopt this scheme to not only remain competitive in

the industry but lessen their impact on their environment.

The rise of digital mediums and social media also gives businesses a chance

to communicate directly with consumers, receive instant feedback and provide

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information to educate consumers around the world on sustainable practices. This

saves money and resources spent on traditional promotional channels, such as

printed advertisements, magazines, and mailed brochures and flyers. Additionally,

the rise of e-commerce allows consumers all over the world to order products online,

saving time and resources.

Finally, innovations in product development, manufacturing and transportation

gives businesses the opportunity to continuously improve their day-to-day operations

in an attempt to lower carbon emissions and unnecessary waste. Organisations such

as the Carbon Reduction Institute of Australia encourage businesses to implement

sustainable practices, by providing Carbon Neutral labelling which Sukin has proudly

worn for a number of years. Businesses must remain proactive to these innovations

to maintain a strong marketing position, through the use of sustainable packaging,

labelling, promotional channels and business platforms.

3.5 EcologicalIn today’s environmentally-conscious world, there are many issues in the

ecological environment that pose major threats to not only specific businesses and

markets, but the world as a whole. Martin and Schouten argue that “humans are

using up or destroying that Earth's vital resources much faster than those resources

can be replenished” which is resulting in a number of serious issues (2012, p. 10). In

the past, increased industrialisation and burning of fossil fuels caused a number of

environmental issues, such as air pollution, smog and acid rain from carbon being

released into the atmosphere (Black & Weisel, 2010). Previously, technological

advances and modelling highlighted that components of the Earth’s protective ozone

layers were rapidly depleting and that heat was being trapped within the atmosphere,

known as the natural greenhouse effect (Black & Weisel, 2010). Today, other issues

such as global warming, melting glaciers, rising sea levels and adverse weather

events may have detrimental consequences. Scientists predict severe flooding of

cities and entire island nations may occur, with natural disasters becoming more

destructive for coastal regions (Roach, 2006). The environmental issues of the

cosmetic and personal care industry include ingredients, specifically dangerous

chemicals, packaging, and general consumer behaviour.

Destruction of the environment for natural resources presents a number of

issues around the world, such as widespread deforestation across Indonesia and

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Malaysia due to unsustainable practices from the palm oil industry (Zoological

Society of London, 2015). As the demand for natural cosmetics rises, businesses are

trying to find cheaper and quicker ways to extract and process ingredients, which

often leads to unsustainable practices. This can have detrimental effects on the

environment, including disrupting ecosystems and depleting non-renewable natural

resources (Simple Luxe Living, n.d.; Dean, 2006).

Chemicals used in products also raise concerns, as the chemicals are

eventually washed into lakes, streams, rivers and public water systems. This can

have a range of adverse effects on the environment, including animals, plants and

water quality (Simple Luxe Living, n.d.). Research also shows direct links between

toxic chemicals and major health concerns, such as birth defects, asthma, cancer,

depression and many more (Ecoaction, n.d.).

Finally, unsustainable consumption and consumer behaviour presents a

number of issues. According to studies from Organic Monitor, 94% of the carbon

footprint of shampoo occurs at the consumer level, with small changes in water

temperature or shower length significantly reducing the overall environmental impact

of the product (Cosmetics Business, 2013). These environmental concerns are only

getting worse, with the growing population numbers, globalisation and increased

standards of living, however scientists agree that these scenarios can be avoided

with responsible practices and sustainable procedures (Martin & Schouten, 2012).

Therefore, key environmental impacts for the cosmetics industry include carbon

emissions, environmental destruction and unsustainable consumption. Conclusively,

it is important for businesses to gain a thorough understanding of their external

environment to be aware of issues which may impact the business. This ensures

businesses will remain proactive and adaptive to sudden change within the market.

4. Market AuditSkincare is the key revenue driver within the cosmetics market, generating

global sales exceeding US$111 billion in 2014 (Euromonitor International, 2015).

Australia’s cosmetics wholesaling industry currently generates $7 billion in revenue

and had an annual growth of 2% between 2010 and 2015 (IBIS World, 2015). The

Australian cosmetics industry currently consists of 1030 business with market share

of companies dominated by L’Oreal Australia, Procter and Gamble and Unilever

Australia (IBIS World, 2015). While there are no brands within the Australian organic

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cosmetics industry with dominant market share, Sukin remains affected by direct

competitors such as A’kin and Moreish Skincare due to similar positioning strategies

as a natural skincare brand. Revenue for this industry of 96 businesses is

significantly less than general cosmetics at $265 million, however annual growth is

almost six times as much at 17.4% between 2010 and 2015 (IBIS World, 2015). This

phenomenal growth is due to surging consumer awareness and increasing concerns

about the dangers of chemical compounds in traditional cosmetics (IBIS World,

2015). Key trends in the skincare market include rising demand for natural

products containing vitamins and minerals, as well as domestic and international

interest in Australia’s natural skincare products with botanical ingredients such as tea

tree and eucalyptus (Austrade, 2015). Ethical consumerism is also a key behavioural

trend as many consumers take into account the ethical, social and environmental

consequences of their purchases (Austrade, 2015). This focus on social, economic

and environmental sustainability in the cosmetics industry indicates that further

sustainable actions implemented by Sukin will position the company as a leader in

the organic cosmetics industry. Thus, proving extremely lucrative, considering the

predicted high growth in future years.

5. Competition and SWOT Analysis

5.1 Competitor AnalysisAustralia’s organic cosmetics industry is a highly competitive sector

regardless of no brands dominating the market. Sukin’s direct competitors include

A’kin, Moreish Skincare, Goodness and Natural Instinct, as these brands

demonstrate similar positioning strategies as a natural skincare brand with emphasis

on sustainability and natural products. As seen in Table 1, all product ranges are free

from animal testing, parabens, sulphates, toxins, and harsh chemicals and are made

from recyclable packaging. Other similarities between competitors include almost

identical distribution strategies as all brands retail through channels like Priceline,

Chemist Warehouse and various other pharmacies, as well as e-commerce through

various websites, including brand websites. The business ethos of each brand also

resembles similar ideologies of creating natural cosmetic products that benefits the

consumer and the environment.

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While the brand’s products are similar in various aspects, there are multiple

differentiating factors to be analysed. All competitors frequently use social media

channels in the form of Facebook and Instagram to communicate with their

consumers. Sukin gains a competitive advantage as it boasts 41,646 Facebook likes

and 15.7k Instagram followers, which is significantly higher than its competitors

(Instagram, 2015) (‘Sukin’, 2015). Opportunities to differentiate are clear in the target

markets for each brand as A’kin clearly targets those of a higher earning income

bracket who are also being a somewhat ethical consumer. The company is

reasonably sustainable, although much less than Sukin as A’kin is not carbon

neutral, grey water safe or certified cruelty free. A’kin is also priced more expensively

and produce packaging of a higher quality and is presented in a more appealing way

compared to the other brands. This raises the issue of quality indicators, as ethical

consumers of a higher income bracket are likely to assume that A’kin’s products are

of a higher standard than Sukin’s, whereas Sukin is a much more sustainable brand

of equal quality products (See Figure 1).

Moreish Skincare also provides products of a higher quality packaging,

although only priced slightly higher than Sukin, which allows for quality indicator

assumptions. Moreish is not as sustainable as Sukin, as it is not carbon neutral, grey

water safe, vegan safe or certified cruelty free. It is critical for Sukin to effectively

communicate the high calibre of its products and emphasise its sustainability without

compromising its sustainable packaging and biodegradable product to remain at a

competitive advantage.

Goodness is a competitor in the sense that it is a clear option for younger less

environmentally knowledgeable consumers, which is a market that Sukin wishes to

maintain. This is clearly demonstrated through the language used by Goodness,

such as, ‘Blissful bunnies (animal testing? No way!)’ (Goodness, 2015). Goodness is

similarly priced to Sukin, however it is not as sustainable, due to not being carbon

neutral, a vegan brand or certified cruelty free, and is packaged and positioned as a

fun brand.

Natural Instinct is Sukin’s main direct competitor as both brands match similar

sustainable criteria, with Sukin proving to be more sustainable as it is carbon neutral

and certified cruelty free, unlike Natural Instinct, thus indicating a competitive

advantage. Similar pricing strategies are employed by both brands as they offer the

lowest priced natural products amongst the competitors, thus demonstrating a cost

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leadership strategy. These lower production and retailing costs are the reason for

lower quality streamlined packaging, common in both brands’ ranges. Natural

Instinct holds an almost identical ethos to Sukin of providing products that are

environmentally friendly and sustainable at an affordable price. This is evident

through Natural Instinct’s aim of providing, ‘high quality, natural products that offer

your family the best results at a price that’s equally down to earth.’ (Natural Instinct,

2015) Sukin’s tagline, ‘Skincare that doesn’t cost the earth’, presents a similar

ideology (Sukin, 2015).

These factors clearly validate that Natural Instinct is a close competitor to

Sukin and is a viable substitute product for the market segment both brands target.

While each competitor claims their own advantages, Sukin remains the leader in the

industry as seen by their high social media following compared to its competitors and

is at the forefront of sustainability with certified cruelty free and carbon neutral status.

Table 1. Sustainability Analysis Sustainability Factors Brands

Sukin A’kin Natural Instinct

Goodness Moreish

Carbon Neutral ✔ ✖ ✖ ✖ ✖

Grey Water Safe/Biodegradable ✔ ✖ ✔ ✔ ✖

Recyclable Packaging ✔ ✔ ✔ ✔ ✔

Vegan Brand ✔ ✔ ✔ ✖ ✖

Animal testing/by products/ derivatives free

✔ ✔ ✔ ✔ ✔

Certified Cruelty Free ✔ ✖ ✖ ✖ ✖

Paraben Free ✔ ✔ ✔ ✔ ✔

Sulphate Free ✔ ✔ ✔ ✔ ✔

Toxin Free ✔ ✔ ✔ ✔ ✔

Harsh Chemical Free ✔ ✔ ✔ ✔ ✔Information sourced from: (Sukin, 2015), (The Purist Company, 2015), (Natural Instinct, 2015), Goodness, 2015), (Moreish Skincare, 2015).

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Figure 1. Perceptual Map

5.2 SWOT AnalysisStrengths Weaknesses

Most sustainable skincare brand amongst competitors (due to carbon neutral status and other eco certificates).

Strong brand following, as indicated by social media presence (Facebook 41293, Instagram 15.1k).

Distributed through retailers across 10 countries, both in store and online.

Affordable price allows for high accessibility from market segments with low income but high eco consciousness.

Australia’s highest selling natural skincare brand (Sukin, 2015)

Perceived as low quality compared to competitors such as A’kin and Moreish. Also due to low price and bland packaging, as a negative quality indicator.

Minimal differentiation between competitors without knowledge of Sukin’s superior sustainability efforts. All brands have similar positioning as a natural skincare brand with similar aims and mission statements.

Increasing availability across the world can decrease Sukin’s sustainability due to increased shipping costs and energy consumption.

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Opportunities Threats

Organic Cosmetics is a growing industry, thus will continue to be profitable in the future.

Behavioural shift to ethical consumerism/favouring sustainability (green consumers).

Social media is a continuing technological trend that allows for instant communication between Sukin’s consumers.

Competition in the organics cosmetics industry is high and the trend is increasing.

Barriers to entry are low in this industry which increases the likelihood of additional competitors.

6. Market Segmentation and Description of the Target MarketSukin products dominantly appeal to female consumers within the green

market. The target market has been categorised into three segments: young females

aged 15 – 24 typically single and educated, mothers aged 25 – 44 and, women 45

and over. The majority of Sukin products appeal to the second market segment,

mothers aged between 25 and 44, classified as household decision-makers who

evaluate perceived benefits of products based on the needs of their family (Sahota,

2014). This is evident amongst Sukin’s existing product range and mission

statement, declaring they offer affordable and effective natural products that are

appropriate for the entire family (Sukin, 2015).

6.1 DemographicIn Australia, females between 25 and 44 equate to 28.1% (3,054,220 million)

of the total female population, most residing in or around metropolitan cities and

large regional towns (Australian Bureau of Statistics, 2011). While almost half of the

population is married, 60.5% of all Australian families have children, averaging two

children per family (Australian Bureau of Statistics, 2011). Both Australia’s national

disposable income and natural personal care market has increased over the past

few years, with average weekly expenditure on personal care products being only

$11 per family, indicating most Australian families are price sensitive towards these

purchases (Australian Bureau of Statistics, 2013; Money Smart, 2012). This

demographic falls within the ‘Green Activists’ segment, identified as individuals

possessing a higher education, greater earning occupations and favourable

disposition toward environmental perspectives (Finisterra do Paço, Barata Raposo &

Filho, 2009; Furlow & Knott, 2009, p. 85). These individuals are considered more

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susceptible to environmental sensitivity due to greater access to information,

consequently accumulating knowledge of environmental issues and the ability of a

higher earning family to sustain the marginal escalation in costs that accompany

supporting most green products (Finisterra do Paço, Barata Raposo & Filho, 2009).

However, given Sukin’s affordable pricing consumers from even a modest social

class, conscious of their budget, can purchase these high quality products.

6.2 GeographicSpecific to Australia’s rugged, desiccated environment, with high UV exposure

and severe humidity, products that complement local climate settings are in need

from Australian consumers (Australian Trade Commission, 2015). According to the

Australian Trade Commission, domestic and international demand is rising for

natural and organic personal care products produced with high quality native

Australian ingredients, particularly in areas of body, hair and skin products,

cosmeceuticals, sunscreen and anti-aging products (Australian Trade Commission,

2015). Allowing local manufacturers, including Sukin, to capitalise on growing

recognition of prestigious Australian ingredients.

6.3 PsychographicEnvironmentally conscious consumers actively seek products that align with

their values and needs, as green is not just a status symbol but a core belief

(Sahota, 2014). When a consumer identifies product or brand attributes relative to

their own values and needs they are more inclined to exhibit high brand commitment

(Guthrie & Kim, 2008). Sukin attracts consumers within Roper’s Genuine Greens,

Not Me Greens and Dream Green segments (Martin & Schouten, 2012). Martin and

Schouten (2012, p.92) defines ‘Genuine Greens’ as committed activists, who believe

all pro- environmental behaviour is achievable, while ‘Not Me Greens’ refers to those

environmental advocates who are apprehensive of big issues and commit to

convenient actions. ‘Dream Greens’ exhibit environmentally concerned attitudes, but

their naivety restricts behaviour (Martin & Schouten, 2012, p.92). Each is different,

however common consensus is these individuals currently are or would be willing to

actively participate in pro-environmental behaviours, given they knew how and the

actions were convenient (Martin & Schouten, 2012).

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Green consumers with high consumption levels of green products are usually

involved in community or social responsible activities (Finisterra do Paço, Barata

Raposo & Filho, 2009). They are highly influenced by others opinions and display a

strong concern for the environment, however their strong attitudes toward

environmental activism does not always guide their purchase decisions (Finisterra do

Paço, Barata Raposo & Filho, 2009). Consumers are sceptical of brands that

promote and advertise themselves as sustainable organisations, although most

individuals are willing to trust familiar logos that represent cruelty free and

environmentally friendly establishments (Finisterra do Paço, Barata Raposo & Filho,

2009; Sahota, 2014). Some consumers experience ‘green fatigue’, an adverse

perception toward environmentally friendly products, as individuals’ cynicism creates

focus on cost and functionality of items, in the belief products are too expensive and

have limited benefits for the environment (Sahota, 2014).

As people become more informed on environmental issues, consumers

recognise the consequences associated with their individual actions and feel

empowered to make green choices, subsequently encouraging ethical consumerism

(Australian Trade Commission, 2015; Sahota, 2014). For mothers the health of their

family comes first, while environmental concern is close second, indicating that for

green products to gain acceptance they must not compromise the needs or wants of

the consumer (Sahota, 2014). These consumers want products that are effective,

providing a functional benefit for themselves and their family, while being

environmentally friendly and reasonably priced (Sahota, 2014). As a ‘no compromise

green’ organization, Sukin has the opportunity to reach consumers outside of the

green-niche market (Sahota, 2014).

6.4 BehaviouralIt is considered women have greater influence over regular low involvement

purchase decisions, such as groceries and personal care products, as they usually

do the shopping for the family and are therefore more familiar with suitable product

options (Sirgy, Rahtz and Portolese Dias, 2015). Women between the ages of 25

and 44 spend the most amount of time on household work, which includes shopping

for family items (ABS, 2011). This demographic has been identified as the primary

target market for Sukin, given the comprehensive range of natural products suitable

for the whole family, which appeals to a mother's concern for purchasing the most

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effective and safe personal care products to fulfil immediate needs (Sahota, 2014).

While women are also believed to be more inclined to display pro-environmental

attitudes and behave with greater concern toward the environment when making

purchase decisions (Finisterra do Paço, Barata Raposo and Filho, 2009; Furlow and

Knott, 2009, p. 85).

Increased media attention and growing social concern for environmental

issues, has influenced shifts within demographic variables of green consumers,

encouraging poorer socioeconomic consumers to support green products (Furlow

and Knott, 2009, p. 85). As premium quality green personal care products are

increasingly more accessible and affordable, a large variety of consumers are

purchasing such luxury goods that they would not have been able to in the past

(Sahota, 2014). The demand for organic and natural cosmetics and personal care

products has increased as consumers become conscious of hygiene and beauty

trends (Sahota, 2014; Souiden & Diagne, 2009). An emerging trend exists

surrounding male cosmetic products, as research indicates most male grooming

consumption is influenced by the women of the household (Data panel, 2002; Junaid

& Nasreen, 2012). While decision to purchase personal care products is primarily

determined by meeting consumer health and wellness needs, ethical and

environmental concerns are also motivating factors (Sahota, 2014). As consumers

are increasingly concerned with individual purchasing patterns causing negative

environmental impacts, they begin to exhibit a preference toward purchasing

environmentally friendly products (Finisterra do Paço, Barata Raposo and Filho,

2009). However, if the product fails to meet expectations consumers are likely to

complain (Sahota, 2014). Given the identified market is active in technology, they are

also inclined to post their product experience on social media and online forums to

reach a broader audience (Sahota, 2014).

7. Customer AuditAs the demand for and use of natural products continues to increase, it is vital

for marketers to have a thorough understanding of this new market’s motivations and

consumer behaviour. Firstly, in terms of Maslow’s Hierarchy of Needs, consumers

are driven to purchase personal care products as a result of their belongingness

motives, such as a desire for love, friendship, affiliation and group acceptance,

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although sustainable consumption may be driven by esteem motives for consumers

to feel superior, prestigious or reach a level of self-respect (Quester, Pettigrew,

Kopanidis, Rao Hill, & Hawkins, 2014). Furthermore, consumers may be heavily

influenced by social factors, specifically reference and membership groups as

individuals may strive to identify themselves as part of an environmentally-conscious

group or aspire to join the Sukin Club membership program. In turn, they conform to

purchasing environmentally friendly products to feel a sense of belongingness in the

group.

Other important aspects of this market's consumer behaviour are the

evaluative criteria consumers use to search and evaluate product alternatives.

Firstly, consumers in this market would generally be looking for an environmentally-

friendly product through informative and symbolic packaging and promotions. Sukin

effectively targets this consumer need by using earthy colours, natural imagery and

the symbolism of a leaf as their logo to identify the product as eco-friendly. However,

problems concerning the trustworthiness and reliability of sustainable claims have

arisen in the market, with terms such as ‘green’ and ‘recyclable’ being so overused

and misused that marketers worry these claims could ultimately become

meaningless to consumers (Furlow & Knott, 2009, p. 87; Zimmer, Stafford and

Stafford, 1994). Some consumers also struggle to distinguish between official, third-

party certifications and non-official eco-labels on products, which again leads to a

high level of mistrust and doubts of the genuinely of these labels (Korink, 2013).

Many studies also show that consumers in the natural personal care market

considers the product’s impact on their skin, body and general health and well-being

as well as that of their family. Korink mentions that ingredients are one of the most

important product attributes consumers consider when choosing cosmetic products,

with heightened awareness of health implications resulting in a “preference for

cosmetics that maintain or promote a healthy lifestyle by containing ingredients

which are beneficial for the skin” (2013, p. 13).

Despite Martin and Schouten (2012) describing a green market as consisting

of customers who will pay a premium price for organic products, Furlow and Knott

(2009) argue that environmental consumerism is no longer for the socially elite.

Sukin specifically has targeted a market who is not only environmentally conscious,

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but also price sensitive by providing affordable, eco-friendly products, therefore,

price may be a very important criteria factor

8. Objectives

Marketing Objectives: Increase brand awareness throughout the 12 month long campaign and

thereafter, via; social media channels, strategic alliance with Bianca Cheah, and

word-of-mouth.

Gain 11% increase in market share over the next five years (2016-2020),

through expansion of the target market.

Retain current customers over the period of the campaign, and thereafter.

Increase Sukin following of social media channels by 20% in the initial month of

the campaign and by 10% for the remaining months of the campaign.

Acquire a 20% increase of new customers during the 12 month long campaign.

Financial Objectives: Increase revenue by 11% over the next five years. Predictions show that the

industry will grow 9% over 2016-2020 (IBIS World, 2015). In the first year of the

campaign, revenue is expected to grow faster than the industry, and thereafter

Sukin will aim to emerge a market leader with larger growth rates than the

industry.

Table 2. Sukin Expected Annual Growth Rate (Sales Forecast)Revenue Growth

Rate201

62017 201

82019 2020

3% 2% 2% 2% 2%

Societal Objectives: Educate consumers on easily adopted sustainable behaviours, via social media

channels, Sukin website and brand ambassador, of which can be implemented at

an individual level over the duration of the 12 month long campaign.

Encourage ongoing individual sustainable behaviours amongst consumers via

social media channels, Sukin website and brand ambassador.

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9. FinancialsSukin marketing budget, profit and loss statement, and sales forecast (Table

2) estimates are not exact amounts, and have been established using fictitious data.

Sukin have anticipated total revenue will increase 3% within the first year ($315,438)

and a further 2% increase within the following three years ($321,746, $328,181,

$334,745). Higher predicted growth rate in the first year reflects the intense

marketing schedule intended for maximum exposure to strengthen total market

share, while the following year’s expenditure will decrease and concentrate on

maintaining existing market share (Belch, Belch, Kerr & Powell, 2014). It is also

expected overall operational expenses will increase as revenue increases. These are

specified in the profit and loss statement (Table 4) as administrative, marketing and

manufacturing expenses. Prior to finalizing the marketing budget, strategic objectives

were first developed then appropriate mediums to achieve those objectives were

selected (Belch, Belch, Kerr & Powell, 2014). This budgeting approach is referred to

as the objective-and-task method, as marketing efforts are selected based on their

ability to successfully achieve the outlined objectives (Belch, Belch, Kerr & Powell,

2014). Planned marketing channels and estimated expenditure have been detailed in

the budget, Table 3.  

Table 3. Marketing Budget

Sukin Marketing BudgetOnline Advertising Price per unit Combined

Cost Total

Sukin Website (redesign of site including maintenance) 17,000 $17,000Priceline Website 800 10,400 $10,400Chemist Warehouse Website 800 10,400 $10,400

Social MediaFacebook 0Instagram 0Pinterest 0Twitter 0

0Bianca CheahBlog/Social Media Posts 650 20,800 $20,800

E-publications/ E-magazinesFashion & Beauty (1/2 page digital coloured) 2,050 24,600 $24,600

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Lifestyle (1/2 page digital coloured) 2,050 24,600 $24,600

InstorePOP Displays (Participating Priceline Stores) 150 4,500 $4,500

InternalTeam Meetings 50 800 $800

Marketing Communications Total $6,550 $113,100 $119,650

Table 4. Sukin Profit and Loss Statement 2016

Sukin Profit and Loss Statement 2016Total revenue 3,200,000Cost of Goods Sold (1,400,000)Gross Profit 1,800,000

ExpensesPostage/delivery (65,000)Advertising (119,650)Depreciation (Equipment) (27,000)Electricity (30,000)Property Insurance/tax (30,200)Interest and bank charges (29,000)Accounting and legal fees (12,600)Printing and stationary (12,000)Rent for premises (130,000)Repairs and maintenance (21,100)Training (8,800)Salaries (980,000)Workers compensation (13,400)Miscellaneous expenses (15,000)Total Expenses (1,493,750)Net Profit (Before Income Taxes) 306,250

10. Implementation, metrics and control

10.1 Implementation The implementation of marketing strategy is paramount to the achievement of

the marketing objectives set out by a firm. Sukin should adhere to the Organisational

Culture implementation approach, by which the organisation’s strategy becomes an

extension of Sukin’s mission, values and culture (Ferrel and Hartline, 2012), which is

obvious of the campaign. This approach also allows for much more effective and

28

efficient implementation of strategy throughout an organisation’s structure. This is

possible because the campaign is built upon the value of sustainability. Therefore,

employees, already exposed to the values of the company, are much more motivated

to implement the strategy (Ferrel and Hartline, 2012). The internal marketing process

is called upon at this point to guide the actions of management to communicate the

strategy to employees and persuade them on it. This will happen in the lead up to the

launch of the campaign with weekly e-newsletters, emails and fortnightly team

meetings.

Sukin’s communication strategies to consumers is also of great importance

throughout the campaign and even prior. The campaign is set to launch January

2016 however, there will be communications in December 2015, which will be hints

to consumers that something exciting is coming. The Sukin website, social media

accounts and internal emails communications will run continually throughout the

campaign. Communications will be particularly dense in the first month of the

campaign to gain greater awareness from consumers, particularly concerning

involvement in the competition being run in that same month. Sukin will also be

extending communications via Bianca Cheah, retailer websites and instore, and E-

publications such as magazines. The schedule has been created so that outside of

the Sukin website, social media, and internal communications there are external

communications of some sort every week that consumers will come into contact with.

The communications schedule (Table 5) below will enable Sukin to achieve

objectives efficiently and effectively with decreased discrepancy between intended

and realised marketing strategy.

Specifically, it is recommended that Sukin embark upon a strong social media

marketing campaign that includes a competition for consumers. The goal of the

campaign is to encourage sustainable consumer behaviours in line with the Sukin

philosophy, expand the Sukin’s brand awareness and target market through the use

of co-branding, brand personality, and consumer involvement. The competition will

be based upon consumers sharing their own innovative sustainable behaviours with

others, using the hashtag “Sukinsecrets”. This not only expands and strengthens the

brand community but also the brand awareness amongst those whom are non-users

of Sukin. The inclusion of incentives in the form of cosmetic gift packs also promotes

involvement in the campaign which in turn directs learning and attitude change of the

potential consumers (Quester, 2014).

29

30

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Table 5. Sukin Marketing Gannt Chart

10.2 MetricsThe following metrics (Table 6) have been devised to achieve the objectives

and to also monitor the progress. From these metrics Sukin can correct and control

any areas that are not meeting standards, so as to once more decrease the

discrepancy between the intended and realised strategy.  

Table 6. Objectives and MetricsObjective Metric

Increase brand awareness throughout the campaign and there after via social media channels.

Measure the percentage increase in followers, likes, posts, and shares of Sukin material from the beginning of the campaign to the end and also thereafter.

Increase brand awareness throughout the campaign and there after via strategic alliance with Bianca Cheah.

Measure the percentage of people who are cross over consumers of both brands.

Retain current customers over the period of the campaign.

Measure percentage of customers who continue to purchase during the campaign and after.

Increase following within social media channels by 20% during the initial month of the campaign and by 10% thereafter.

Measure percentage increase of followers (or likes where necessary) across the multiple social media channels.

Acquire 20% increase of new customers during the 12 month long campaign.

Measure percentage of new customers acquired within the duration of the campaign.Measure number of new email subscribers.Measure increase in sales percentage.

Gain 11% increase in market share over 5 years (2016-2020).

Measure dollar sales divided by total industry sales during the 5 years.Measure product sales in dollars (over the same period) per year with weekly, monthly and quarterly updates to track progress.

Encourage sustainable behaviours amongst consumers

Measure the number of shares, likes and pins of #Sukinsecrets posts amongst consumers during the campaign.

Educate consumers about easily adopted sustainable behaviours

Measure consumer knowledge via the quality of user generated content being posted to Sukin social media.

It is also of importance for Sukin to evaluate sales key performance indicators

(KPIs), online orders from consumers, retailer orders and the request of new

wholesalers or retailers to measure sales performance. These measures will be

32

audited every week, month, quarter and year in line with respective targets to

evaluate progress of the objectives.

10.3 ControlThe above tools and strategies aid Sukin in controlling the profitability,

productivity and strategy of the campaign and the objectives. It is critical to success

that the evaluation of marketing activities by both management and employees are

initiated and executed throughout the life of the campaign. Another key consideration

of implementation and control of marketing strategy is to monitor progress and also if

the plan is beginning to fall off course; this particularly shows the worth of metrics.

This is the final system in successful implementation - contingency plans. Sukin will

have various contingency plans in place in the case of strategy going off course

whether controllable or not. Such plans will be concerned with anticipating issues

surrounding natural disasters (affecting distribution and production), shifts in external

environment (economic, political and cultural), PR disasters (Sukin or Sukin affiliates)

and poor implementation of strategy.

Finally, upon reflection of the implementation, metrics and control systems in

place, Sukin can efficiently evaluate the discrepancies of the intended strategy and

the realised strategy. From this point the knowledge acquired can then aid in the

contextualising of expected outcomes, historical events, competitive or industry

outcomes, and environmental influences via metrics that may have taken place over

the campaign. All of which aids in future implementation programs.   

A strong implementation program is of paramount importance.

Communication schedules clearly organise activities to lower the risk of confusion,

metrics allow staff to effectively measure the progress towards achieving objectives

and control systems provide assets both in the present and the future success of

implementation. Therefore, Sukin’s strong implementation program that combines

the aforementioned tools, programs, and strategies minimises risk and increases the

expected success of the campaign by coming as close as possible to the intended

strategy.

11. ConclusionIn order for Sukin to remain a leading Australian provider for natural skin and

hair care products, continuous responsiveness is necessary to maintain competitive

33

advantage. Adhering to various regulatory requirements and pursuit of potential

grants and funding from the Australian Government are advantageous to increase

publicity of Sukin and its sustainable achievements (Department of the Environment,

2015). While innovations in product development, manufacturing and transportation

also provide opportunities to improve day-to-day operations to lower carbon

emissions and unnecessary waste. As consumers become increasingly aware of the

consequences of their daily purchases have on the environment a behavioural shift

towards ethical consumerism, combined with increasing disposable income, sees a

projected growth in the sustainable personal care and cosmetics industry (IBIS

World, 2015; Korink, 2013). However, as Sukin specifically targets segments who

are not only environmentally conscious, but also price sensitive, the existing low

pricing strategy suggests that higher income would have little effect on the business

because the product is already affordable. Sukin must remain proactive to counteract

low quality perceptions, as lower pricing and bland packaging compared to

competitors is a potential indicator of inferior quality. Utilizing favoured e-commerce

mediums have been considered a valuable resource for promotion, consequently,

implementation of the proposed Sukin campaign has been created predominantly

using various e-commerce channels.

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